使用达到的预算组织目标.ppt

UsingBudgetstoAchieveOrganizationalObjectives,Chapter11,LearningObjective1,Identifytheprimaryroleofbudgetsandbudgetinginorganizations.,Capacity-RelatedandFlexibleResources,Whatareflexiblecosts?Theyarecoststhatvarywiththeactivitylevelintheorganization.Whatarecommittedcosts?Theyarecoststhatdonotchangewithchangesinactivitylevel.Thebudgetaryprocessdeterminesthelevelofmostcommittedcosts.,PlanningandControlandtheRoleofBudgets,Whatisabudget?Itisaquantitativeexpressionofthemoneyinflowsandoutflowsthatrevealswhetherafinancialplanwillmeetorganizationalobjectives.Whatisbudgeting?Itistheprocessofpreparingbudgets.,PlanningandControlandtheRoleofBudgets,Budgetsareacentralpartofthedesignandoperationofmanagementaccountingsystems.Budgetsalsoprovideawaytocommunicatetheorganizationsshort-termgoalstoitsmembers.Budgetingservestocoordinatetheorganizationsactivities.,PlanningandControlandtheRoleofBudgets,Budgetingisatoolthatforcescoordinationoftheorganizationsactivitiesandhelpsidentifycoordinationproblems.Budgetsarepreparedforspecifictimeperiods.Differencesbetweenactualresultsandthebudgetplanarecalledvariances.,PlanningandControlandtheRoleofBudgets,IdentifyOrganizationObjectivesandShort-TermGoals,DevelopLong-TermStrategyandShort-TermPlans,DevelopMasterBudget,MeasureandAssessPerformance,ReevaluateObjectives,Goals,Strategy,andPlans,Planning,Control,PlanningandControlandtheRoleofBudgets,Budgetinginvolvesforecastingthedemandforthreetypesofresources.FlexibleresourcesthatgiverisetovariablecostsIntermediate-termcapacityresourcesthatgiverisetocapacity-relatedcostsLong-termcapacityresourcesthatgiverisetocapacity-relatedcosts,LearningObjective2,Demonstratetheimportanceofeachelementofthebudgetingprocess.,Budgeting,Thebudgetingprocessdescribesthebroadactivitiesperformedduringthebudgetperiod.Plannerscanselectanybudgetperiod,butusuallychooseoneyear.,ElementsofBudgeting,1.OrganizationGoals,3.CapitalSpendingPlan,2.SalesPlan,5.ProductionPlan,8.LaborHiringandTrainingPlan,10.ExpectedFinancialResults,4.InventoryPolicy,6.ProductiveCapacity,7.MaterialsPurchasingPlan,9.AdministrativeandDiscretionarySpendingPlan,11.StatementofExpectedCashFlows,12.ProjectedFinancialStatements,LearningObjective3,Explainthedifferenttypesofoperatingbudgetsandfinancialbudgetsandtheirinterrelationships.,MasterBudgetOutputs,Themasterbudgetincludestwosetsofoutputs:,Theexpectedorprojectedfinancialresults,Theplansoroperatingbudgets,OperatingBudgets,Operatingbudgetstypicallyconsistofsixoperatingplans:Thesalesplanidentifiestheplannedlevelofsalesforeachproduct.Thecapitalspendingplanspecifiesthelong-termcapitalinvestments.Theproductionplanschedulesallrequiredpurchasingactivities.,OperatingBudgets,Thematerialspurchasingplanschedulesallrequiredpurchasingactivities.Thelaborhiringandtrainingplanspecifiesthenumberofpeopletheorganizationmusthireorrelease.Theadministrativeanddiscretionaryspendingplanincludesadministration,staffing,researchanddevelopment,andadvertising.,FinancialBudgets,Plannersusuallypresenttheprojectedfinancialresults,orfinancialbudgets,inthreeforms:AstatementofexpectedcashflowsTheprojected(proforma)balancesheetTheprojected(proforma)incomestatement,FinancialBudgets,Financialanalystsusethestatementofprojectedcashflowsintwoways:Toplanwhenexcesscashwillbegeneratedsothattheycanundertakeshort-terminvestmentsToorganizehowtomeetanycashshortages,LearningObjective4,Describethewaythatorganizationseffectivelyuseandinterpretbudgets.,TheBudgetingProcess,Whatisademandforecast?Itistheestimateofthemarketdemand,orsalespotential,foraproductgiventhespecificproductprice.Thisforecastdrivesthebudgetingprocess.Whatistheproductionplan?Itidentifiestheintendedproductionduringeachsub-periodoftheannualbudget.,TheBudgetingProcess,Howfrequentcanbudgetsub-periodsbe?dailyweeklymonthlyPlannersusetheinventorypolicyalongwiththesalesplantodeveloptheproductionplan.,TheBudgetingProcess,Whatisaggregateplanning?Itisanapproximateddeterminationofwhethertheorganizationhasthecapacitytoundertakeaproposedproductionplan.Whatarespendingplans?Theyaretentativeresourcecommitments.,TheBudgetingProcess,Whatareexamplesofspendingplans?,Materialspurchasingplans,Laborhiringandtrainingplan,Administrativeanddiscretionaryspendingplan,Capitalspendingplan,TheBudgetingProcess,Whatresourcesdeterminecapacitylevels?FlexibleresourcesthattheorganizationcanacquireintheshorttermCommittedresourcesthattheorganizationmustacquirefortheintermediatetermCommittedresourcesthattheorganizationmustacquireforthelongterm,CapacityTypesandCommitmentTime,TermFlexibleresourcesrequiredinshortterm(lessthanseveralweeks),TypeofCapacityAcquiredProvidestheabilitytouseexistingcapacity,ExamplesRawmaterials,supplies,casuallabor,CapacityTypesandCommitmentTime,TermCommittedresourcesacquiredfortheintermediateterm(uptosixmonths),TypeofCapacityAcquiredGeneralpurposecapacitythatistransferablebetweenorganizations,ExamplesPeople,generalpurposeequipment,specialtyrawmaterials,CapacityTypesandCommitmentTime,TermCommittedresourcesacquiredforthelong-term(morethansixmonths),TypeofCapacityAcquiredSpecialpurposecapacitythatiscustomizedfortheorganizationsuse,ExamplesBuildings,specialpurposeequipment,InterpretingtheProductionPlan,Productionistheminimumofdemandandcapacity.,Production=Minimum(productioncapacity,totaldemand),TheFinancialPlans,Onceplannershavedevelopedtheproduction,staffing,andcapacityplans,theycanprepareafinancialsummaryofthetentativeoperatingplans.Whatisalineofcredit?Itisashort-termfinancingarrangement,withapre-specifiedlimit,betweenanorganizationandafinancialinstitution.,TheCashFlowStatement,ProjectedCashFlowStatementCashinflowsfromsalesandcollectionsofreceivablesCashoutflowsfor:Short-termflexibleresourcesIntermediate-termcommittedresourcesLong-termcommittedresourcesResultsoffinancingoperations,TheCashFlowStatement,FormatofCashFlowStatementCashinflowsCashoutflows=Netcashflow,TheCashFlowStatement,FormatofFinancingSectionofCashFlowStatement,Netcashflowfromoperations+OpeningcashCashinvestedorwithdrawnCashprovidedorusedinissuingorretiringstockordebt=Cashavailablebeforeshort-temfinancingCashusedorprovidedbyshort-termfinancing=Endingcash,UsingtheProjectedResults,Ppareprojectedoperatingandfinancialresults.,Cost-Volume-ProfitAnalysis,Conventionalcost-volume-profitanalysisrestsonseveralassumptions.Whataresomeoftheseassumptions?Allofanorganizationscostsareeitherflexibleorcapacityrelated.Unitsmadeequalsunitssold.Revenueperunitdoesnotchangeasvolumechanges.,Cost-Volume-ProfitAnalysis,Whatisthecontributionmargin?Itisthesellingpricelessallflexiblecosts.Whatisthebreak-evenpointinunits?,Capacity-RelatedCostsContributionMarginPerUnit,Cost-Volume-ProfitAnalysis,AssumePrincetonCompanymanufacturesthreeproducts:Plasticvalves,metalvalves,andspecialtyvalves.Capacityrelatedcostsare$20,400,000.,PlasticMetalSpecialtyUnitSales500,000425,000400,000ContributionMargin$14$15$13,Cost-Volume-ProfitAnalysis,Whatistheweightedaveragecontributionmargin?Plasticvalves:$14500,0001,325,000Metalvalves:$15425,0001,325,00Specialtyvalves:$13400,0001,325,00$14.0189,Cost-Volume-ProfitAnalysis,Whatisthebreakeveninunits?$20,400,000$14.0189=1,455,178Howmanyplasticvalves?1,455,178500,0001,325,000=549,124Howmanymetalvalves?1,455,178425,0001,325,000=466,755,LearningObjective5,Undertakewhat-ifandsensitivityanalysistwoimportantbudgetingtoolsusedbybudgetplanners.,What-IfAnalysis,Whatis“what-if”analysis?Itisastrategythatusesamodeltopredicttheresultsofvaryingkeyparametersorestimates.,SensitivityAnalysis,Whatissensitivityanalysis?Itistheprocessofselectivelyvaryingaplansorabudgetskeyestimates.Ifsmallchangesinparametersproducelargechangesindecisionsorresults,theplanissaidtobesensitivetotheestimates.,LearningObjective6,Identifytheroleofbudgetsinserviceandnot-for-profitorganizations.,TheRoleofBudgetinginServiceandNot-For-ProfitOrganizations,Theroleforbudgetinginplanningandcontrolisasimportantinnot-for-profitandgovernmentorganizationsasitisinprofitseekingorganizations.,TheRoleofBudgetinginServiceandNot-For-ProfitOrganizations,OrganizationFocusofBudgetingTypeProcess,ManufacturingSalesandmanufacturingactivities,NaturalresourcesSales,resourceavailability,andacquisition,ServiceSalesactivities,andstaffingrequirements,NonprofitRaisingrevenuesandcontrollingexpenditures,TheRoleofBudgetinginServiceandNot-For-ProfitOrganizations,Whatisanappropriation?Itisanauthorizedspendinglimitinagovernmentaldepartment.Whatisaperiodicbudget?Itisabudgetpreparedforaspecifiedperiodoftime.usuallyoneyear,TheRoleofBudgetinginServiceandNot-For-ProfitOrganizations,Whatiscontinuousbudgeting?Itistheprocessthatorganizesthebudgetintosubintervals.Aseachbudgetsubintervalends,theorganizationdropsthecompletedsubintervalfromthebudgetandaddsthenextbudgetsubinterval.,ControllingDiscretionaryExpenditures,Organizationsusethreegeneralapproachestobudgetdiscretionaryexpenditures.,IncrementalBudgeting,Zero-BasedBudgeting,ProjectFunding,ControllingDiscretionaryExpenditures,Whatisincrementalbudgeting?Itisanapproachtodevelopingappropriationsfordiscretionaryexpendituresthatassumesthatthestartingpointforeachdiscretionaryexpenditureitemistheamountspentonitinthepreviousbudget.,ControllingDiscretionaryExpenditures,Whatiszero-basedbudgeting?Itisanapproachtodevelopingappropriationsfordiscretionaryexpendituresthatassumesthatthestartingpointforeachdiscretionaryexpenditureitemiszero.,ControllingDiscretionaryExpenditures,Whatisprojectfunding?Itisanapproachtodevelopingappropriationsfordiscretionaryexpendituresthatorganizesappropriationsintoapackagethatfocusesonachievingsomedefinedoutput.,ControllingDiscretionaryExpenditures,Arecentphenomenonhasbeentheriseofactivitybasedbudgeting.Activitybasedbudgetingusesknowledgeabouttherelationshipbetweenproductionunitsandtheactivitiesrequiredtoproducethoseunitstodevelopdetailedestimatesofactivityrequirements.,LearningObjective7,Recognizethebehavioraleffectsofbudgetingonanorganizationsemployees.,ManagingtheBudgetProcess,Whoshouldmanageandoverseethebudgetingprocess?Manyorganizationsuseabudgetteam.Th